An Inverness medical technology company has collapsed into administration with 38 members of staff having lost their jobs.
ODx Innovation was backed with £1.75 million from Highlands and Islands Enterprise (HIE) when it relocated to the Highlands in 2019.
A small number of employees have been retained by the joint administrators while they seek a buyer for the company’s assets.
AAB head of restructuring and recovery Duncan Raggett said the company ran out of money despite directors having done “everything they could” to keep it going.
He said: “I appreciate this is extremely difficult for the employees, particularly at this time of year.
“The directors did everything they could to keep the business afloat but unfortunately the company did not have the funds to continue and as a result administration was unavoidable.”
He added he and fellow administrator Seamas Keating of FPM Accountants would be “working around the clock” to find a buyer for the company’s “ground-breaking technology”.
The company was involved in the development of a device that helps detect antibiotic resistance in urinary tract infections (UTIs) that would speed up diagnosis and treatment.
The ODx test can help decide whether treatment is needed or not, reducing antibiotic use.
It aimed to grow to have 60 roles including assembly technicians, lab, office and clinical staff at its base at Solasta House on Inverness Campus.
‘Ground breaking’ diagnostic technology
“The company has developed ground-breaking technology that has the potential to help people all around the world,” Mr Raggett said.
“The joint administrators will be working around the clock to find a purchaser for the business and assets that will secure a future for the great work done to date by the company.
“We would encourage anyone with any interest in the company’s business and assets, to make contact with our office as a matter of urgency.”
A spokesman for HIE said that the cash was allocated to support the company’s life sciences R&D work, adding that “all of this work was carried out and the grant conditions fulfilled”.
He said: “We are always disappointed to hear of any enterprise experiencing difficulties. ODx has been an important element in our region’s growing life sciences sector for the past three years.
“This will be a very worrying time for the company’s employees, and we will be working with our partners through PACE (Partnership for Action on Continued Employment) to help those facing redundancy.
“The Highlands and Islands life sciences sector remains very strong and growing, and the skills and experience of ODx employees should be attractive to other companies looking to recruit, so there are grounds for optimism in that respect.”
The company was founded in 2016 as Orbital Diagnostics and was a spin out from the University of St Andrews.
The failure came despite having raised $17.7 million (£14.9m) in loans in 2021. According to its most recent accounts filed at Companies House, the company said it needed to raise more cash from current and existing investors early in 2023.
The directors had added they were expecting a “positive outcome” to investor discussions.
The firm’s chief executive, Giles Hamilton, had his role terminated the same day as administrators were appointed.
The administrators of ODx Innovations were formally appointed 19 December 2022 by the directors of the company.
Mr Raggett added: “We shall be doing our utmost to provide the employees the information and support they need to be able to claim monies due to them from the Government’s Redundancy Payments Service.”